Apple’s flagship store in Beijing is closed to prevent the spread of Covid-19.
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stock has broken below a key level. That’s an ominous sign for the broader market.
Its current price—$142.56 a share—is, of course, bad for the technology behemoth. After Wednesday’s trading, Apple (ticker: AAPL) lost its No. 1 ranking as the world’s most valuable company to Saudi Aramco (2222.SA), the energy giant backed by Saudi Arabia.
But perhaps even more disturbing: It’s a foreshadowing for other stocks.
Since early November, Apple shares have found a bottom at $150 each, an amount that drew investors in. They didn’t buy, though, at $150 this time.
And their decision to stay on the sidelines makes it much tougher to know where that bottom price is—and much easier to think that stock will just keep dropping. Shares fell 2.7% Thursday after having fallen 4.6% Wednesday, coming close to marking something rarely seen: The last time the stock fell 5% for two straight days was Oct. 14 and 15, 2008, according to Dow Jones Market data.
No wonder if investors are unsettled. If Apple can’t hold the line, how can the broader market fare much better—or even as well?
And they’re right to ask. The
is down 18% for the year, pushed down—in the most simplest of terms—by anxiety. They’re watching the global economy struggle with China’s zero-Covid-19 policy and Russia’s attack on Ukraine.
And on the home front, the Federal Reserve is trying to both bring down sky-high prices and keep the labor market strong—fallout from the…